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• FAQ

If your question is not answered below, please call us on 0800 737 738.

Is my money safe in Perpetual Trust's Mortgage Fund?

The Mortgage Fund has sufficient liquidity to manage redemptions at current levels. The investor base is stable and diverse. A large proportion of investors have been with us for many years. There is one impaired loan in the Fund, but this is covered by over $1.2 million in reserves. The Fund is compliant with its Prospectus and Trust Deed, and Perpetual Trust management is required to certify this to the Pyne Gould Corporation Board every month.

What about my other Perpetual Trust investments? Are they safe?

The Mortgage Fund is legally separate from other funds managed by Perpetual Trust. Perpetual Trust and the Fund have strong management teams. Perpetual Trust is 124 years old and is wholly-owned by Pyne Gould Corporation. Pyne Gould Corporation, which is involved in finance and wealth management, is listed on the New Zealand Stock Exchange and has a market capitalisation of more than $300 million

Would it be better for me to put my money in the bank? Aren't their interest rates higher?

In making a decision you need to consider your circumstances, such as need for cash, diversification and level of risk you are prepared to take. However, bank interest rates have dropped and the Mortgage Fund rates are now higher than the banks.

How are you different to a finance company?

The Mortgage Fund is owned by you the investor. Perpetual Trust manages the Fund for you for an agreed fee. It is not working to generate profits for a separate group of shareholders as is the case with finance companies. Perpetual Trust is 124 years old and is wholly owned by Pyne Gould Corporation, which is listed on the New Zealand Stock Exchange and is involved in finance and wealth management.

What makes Perpetual Trust's Mortgage Fund different?

Perpetual Trust's Fund management is very conservative to whom it lends money. All loans are subject to strict approval processes set by the Board of Perpetual Trust. The Fund is relatively small and specialised. We do not lend on bare land developments. The Fund is not exposed to a few large lenders - it has a broad spread of lenders.

What is your current exposure to property development?

We do not lend on bare land developments. The Fund has very limited amounts lent to development projects, currently totalling 4 per cent. The investors' funds are secured by first mortgages over property with sound income streams.

Are you going to freeze the Fund?

We have no plans to freeze the Fund. The customer base is stable and we have sufficient liquidity to meet current redemption levels. We are very conservative and have a high quality loan book. The Fund is compliant with its Prospectus and Trust Deed, and Perpetual Trust management is required to certify this to the Pyne Gould Corporation Board every month.

There has been coverage about mortgage funds being unsustainable. Is that right?

There have been some mortgage funds which have decided to temporarily freeze redemptions. Perpetual Trust's Fund has sufficient liquidity to manage redemptions at current levels. That's because it has tight controls around liquidity management and we are a relatively small specialised fund which our investors value as a means of diversifying portfolios. We believe our Fund has a long-term future. It is specialised, high quality and benefits from experienced management by Perpetual Trust and the strong governance of listed Pyne Gould Corporation.

Didn't find an answer to your question? Please feel free to make an online enquiry and one of our advisers will get back to you. Alternatively you can call your nearest Perpetual Trust office on 0800 737 738 or e-mail us: email@perpetual.co.nz